Hundreds of NHS workers who took partial retirement could see their redundancy payments reduced due to obscure rules which unions have described as “outdated” and a “scandal”.

UNISON and MiP have called on the government to give unions and NHS employers a mandate to negotiate changes to rules in the Agenda for Change handbook which reduce reckonable service for partially retired staff.

One NHS worker, who wished to remain anonymous, described feeling “sick” when they realised the implications. After 35 years’ NHS service, they had opted for partial retirement in 2024. It was only when placed at risk of redundancy that they discovered the clause in the NHS Agenda for Change handbook which reduces their reckonable service — and hence their potential redundancy payment.

“If I’d known what I know now, I would have never taken partial retirement,” the worker said.

UNISON deputy head of health Alan Lofthouse said a resolution was particularly urgent when the NHS is the midst of cutting tens of thousands of jobs.

“Older workers took advantage of pension flexibilities that they thought would protect their terms and conditions and let them continue to work in the NHS,” he said. “Now, they’re starting to realise that there’s a huge impact on redundancy payments when they face losing their jobs.

“It’s important to protect flexible retirement options as they provide a great way to reduce hours and bring pension into payment,” added Lofthouse. “But we need to protect those who face redundancy from being shortchanged after giving so many years’ service to the NHS.”